In order to permit some unitholders (who have US dollars to invest) to achieve a return in US dollars that is the same as the Canadian market return without being affected by the US/Cdn. FX rate, various mutual fund trusts will issue a "Series USD" (with subscriptions and distributions payable in US dollars) and purchase currency forward contracts (with resulting gains or losses being allocated to the holders of the Series USD, but with the NAV being determined in a similar manner to the existing series) to accomplish this end. Conversely, each fund will issue "Hedged Series" which, through the purchase of related currency forward contracts, will generate foreign market returns for those with Canadian dollars to invest which are neutral to fluctuations in the Canadian dollar compared to the relevant foreign currency. The existing declarations of trust provided that units of a fund may be divided into two or more series that are identical to other units except for "certain" variations respecting rights inter alia to distributions.
Rulings that these changes to not result in dispositions at the unitholder or fund levels "provided that the rights...attaching to [the new series] are based on current market conditions at the time of the offering."